Allowed

Citicorp Finance (India) Ltd. v. Sherali H. Hazi and Ali Hasan Hazi

Bombay HC23 Aug 2011ARBP/648/2011

Case brief

AI extract

What is this about?

The Court allowed a section 9 petition for arbitration regarding a defaulted loan. It appointed the Court Receiver to take physical possession of the hypothecated vehicle after a specified period, granted powers to take forcible possession with police assistance, restrained disposal of the vehicle, and appointed respondents as agents upon execution of agreement.

What did the court decide?

Appointment of Court Receiver with powers to take forcible possession of the vehicle, restrain disposal, and appoint agents.

Citicorp Finance (India) Ltd. Vs Sherali H. Hazi and Ali Hasan Hazi — Arbitration | Bombay HC (2011)

arbp648-11

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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ARBITRATION PETITION NO.648 OF 2011

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Citicorp Finance (India) Limited ....Petitioners V/s.

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Sherali H. Hazi & Anr.

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...Respondents

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Ms.S. Sahasane with Mr.V.S. Chavan i/b S.I. Joshi & Co. for the Petitioners.

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None for the Respondents.

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CORAM : S.J. VAZIFDAR, J. DATE : 23RD AUGUST, 2011.

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P.C. :-

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This is a petition under section 9 of the Arbitration and Conciliation Act, 1996.

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According to the petitioners, the respondents are bound and liable to pay amounts under the loan/hypothecation agreement entered into between the petitioners and respondent Nos.1 and 2. Respondent No.2 is the guarantor. According to the petitioners, the amount under

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the said agreement has not been repaid. The petitioners dues are secured by the hypothecation of the vehicle. As a result thereof, the matter is to be decided in arbitration.

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In the circumstances, the above petition is disposed of by the following order :-

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arbp648-11

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(i) Pending the hearing and final disposal of the arbitration proceedings, and for a period of twelve weeks thereafter the Court Receiver, High Court, Bombay is appointed as a Receiver of the hypothecated vehicle referred to in the agreement and prayer clause (a) of the petition, with all powers under Order XL Rule 1 of the Code of Civil Procedure, 1908.

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(ii) In the event of the petitioners itself indicating the location of the said vehicle, the Court Receiver shall take possession thereof, without notice to the respondents.

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(iii) In the event of the respondents not handing over possession to the Court Receiver, as directed by him, the Court Receiver shall take forcible possession without further reference to this Court. For this purpose, the Court Receiver shall be entitled to take the assistance of the police. The Court Receiver shall also enter into the agency agreement at the earliest.

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(iv) Upon taking possession of the said vehicle, the Court Receiver shall, in the first instance, appoint the respondents as his agents in respect of the said vehicle on the usual terms and conditions including as to security and royalty but only after the agency agreement is executed by the concerned respondents.

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(v) In the event of the respondents refusing to accept the agency of the Court Receiver, the Court Receiver shall file a report for seeking directions including for appointing an agent in respect thereof

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or for the sale of the said hypothecated vehicle.

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(vi) Liberty to apply for further reliefs, including in respect of those reliefs which have not been granted by this Court, after the Court Receiver takes possession and in the event of the security being inadequate to meet the alleged claims of the petitioners. All rights and contentions in that regard are kept open.

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(vii) Till the Court Receiver takes possession of the vehicle, the respondents, either by themselves or through their servants or agents are restrained in any manner from transferring, disposing of, alienating, encumbering or creating any third party rights in respect of the said hypothecated vehicle.

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(viii) The respondents are ordered and directed to disclose the location of the vehicle within two weeks from the date of service of the copy of this order.

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(ix) The undertaking to file the affidavit of service within two weeks from today, if not already filed, is accepted. It is clarified that the Court Receiver shall take physical possession of the vehicles upon the petitioners identifying the same in the event of the Court Receiver being unable to locate the respondents despite efforts.

Citicorp Finance (India) Ltd. v. Sherali H. Hazi and Ali Hasan Hazi

Case brief

What is this about?

What did the court decide?

Citicorp Finance (India) Ltd. v. Sherali H. Hazi and Ali Hasan Hazi

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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